Safe Harbor — With the exception of historical information, the information presented on these web pages are forward-looking statements that involve risks and uncertainties which could affect actual results. These items are discussed at length in Part I, Item 1A of Berry’s Form 10-K filed with the Securities and Exchange Commission.
The Company’s roots date back 100 years to California’s heavy oil fields, but today California is only one piece of our oil story. We currently have six asset teams: South Midway-Sunset (S. Midway), North Midway-Sunset including Diatomite (N. Midway), Permian, Uinta, E. Texas and Piceance.
With our Uinta basin assets in Utah and our 2010 entry into the Permian basin in West Texas, Berry Petroleum is now a three-basin oil company with 65% of its total proved reserves located in California, the Uinta and the Permian. We expect oil production from these three basins to account for 70% of 2011 total production.
California continues to play a key role in our growth and represents 43% of our 2010 proved reserves. Our legacy assets in the Midway-Sunset field provide us with low base decline production and free cash flow while our diatomite asset and early stage steam floods provide our future growth potential. Our California assets are benefitting from the current strong demand for heavy crude coupled with low natural gas prices that keep our steam operating costs low.